How to Workaround "No Re-issue of OTP" Timeline on New Launch Closing



Under the terms of the standard Option to Purchase (OTP), the OTP will expire three weeks after the Sale and Purchase Agreement (S&PA) and copies of the title deeds are delivered to the intending purchaser. The intending purchaser will have to exercise the OTP before it expires by signing the S&PA and returning it to the developer. If the purchaser fails to exercise the OTP, 25% of the booking fee may be forfeited by the developer.


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Restriction

1. Restrict developers from providing upfront agreement to purchaser(s) to re-issue OTP; and

2. Restrict developers from re-issuing OTP to the same purchaser(s) for the same unit within 12 months after the expiry of the earlier OTP; and to inform purchaser(s) of this condition upfront.


Allowance

While the current validity period in the standard OTP is generally sufficient for most purchasers to exercise the OTP, the Controller recognises that there may be some purchasers who require more time to finalise the necessary arrangements before exercising the OTP. <